Emerging markets tend to be...

Faster growing but more volatile

What helps an emerging market survive shocks?

Strong reserves and steady policy

Lost most of its value against the dollar

India, Indonesia, Brazil, Mexico, South Africa, Vietnam: emerging markets are economies still catching up with rich countries, often fast.
Young populations, new cities and rising incomes can mean faster growth than in rich countries. That attracts investors hunting for returns.
The catch: they swing harder. When global investors get scared, or US rates rise, money rushes out, currencies fall and imports get pricier.
Real example: the 1997–98 Asian crisis. A dollar went from about 2.5 to over 4.5 Malaysian ringgit (chart). The Indonesian rupiah lost over 80% of its value.
Since then, many emerging economies built big foreign reserves and let their currencies float, which helps them ride out storms better.
Common mistake
Mistake: “fast growth means a great investment.” Growth is often already in the price, and currency swings can wipe out gains for foreign investors.
Key takeaway
Emerging markets: more growth, more swings. Reserves, steady policy and US interest rates decide how rough the ride gets.

India and Brazil are often called... Emerging marketsThey're large, fast-growing economies that are still catching up with rich ones.
Emerging markets tend to be... Faster growing but more volatileMore growth potential comes with bigger swings in currencies and stocks.
What helps an emerging market survive shocks? Strong reserves and steady policyReserves let the central bank calm its currency, and steady policy keeps investors' trust.
During the 1997–98 Asian crisis, the Indonesian rupiah... Lost most of its value against the dollarIt fell from about 2,400 to over 16,000 per dollar at its worst.